Dutch mail and parcel service Cycloon is laying off 440 employees as part of a reorganization. The cargo bike courier from Zwolle is discontinuing the delivery of parcels that do not fit through the mailbox.
As a result, the company has announced the closure of sixteen bicycle courier branches and the central parcel sorting center, leading to the loss of 68 full-time positions. From now on, Cycloon will focus solely on delivering mail and mailbox-sized parcels. Mail delivery employees will remain employed. The social company also offers jobs for people who are a distance from the labor market and plans to keep those positions.
Since July last year, Cycloon has been wholly owned by e-commerce giant Bol.com. At the time, Bol still aimed to grow Cycloon’s bicycle delivery service, as it was seen as a sustainable and socially responsible solution to the ‘last mile problem.’ However, the company now seems to be reversing that stance. .
The parcel delivery market has been under pressure for some time. Cycloon says it can no longer compete in that market, citing rising costs due to inflation and competitors that were able to grow and become more sustainable faster. The company was unable to find a buyer for its parcel delivery service.
Source: NOS